Cemex aims for 4Q04 Ebitda of US$560m

14 December 2004

Cemex plans to report more than US$560m in Ebitda fourth quarter this year, which would represent a 10% jump over the same quarter last year, Cemex said in a statement.

Cemex expects operating income to reach US$390m and revenue to total more than US$1.9bn during the same 2004 period, while 4Q03 results came in at US$342mn for operating income and US$1.8bn for consolidated net sales.

For the full year, the company aims for Ebitda of US$2.5bn and revenue of US$8bn, while 2003 figures totaled US$2.11bn for Ebitda and US$7.16bn for net sales.

Cemex Mexico expects its 4Q04 gray cement volumes to grow 3% over the same year-ago quarter and 2.5% for the full year versus 2003, thanks to continued cement demand in the public works and housing sectors.

Cemex aims to make effective its US$5.8bn acquisition bid of RMC on January 12, 2005. In the meantime, the Mexican company is in the process of selling off non-vital assets. Brazilian conglomerate Grupo Votorantim signed a letter of intent to buy two US plants from Cemex for US$400mn.

Experts believe Cemex will continue selling assets and use the cash flow generated to reduce its debt.